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The Tax Publishers Vam-Hi-Fashion Garments Pvt. Ltd. v. Asstt. CIT [ITA No. 494 (Del) of 2016, dt. 21-3-2016] : 2016 TaxPub(DT) 1579 (Del-Trib) Addition under section 68 for share capital invested by a non-resident *Facts:* Assessee Pvt. Company in the business of ready-made garments had received share capital investment from one Sh. Suveer Arora amounting to INR 3.1 crores. The said investor had vast experience in ready-made garments business, also a tax assessed non-resident based out of Netherlands. Following documents were produced as proof for the said share capital investment by the assessee. a. Confirmation from Mr. Suveer Arora b. Copy of PAN Card of Mr. Suveer Arora c. Copy of Bank Statement showing the investment made and source thereof. d. Copy of Form No.2 regarding allotment of shares e. Copy of Passport of Mr. Suveer Arora f. Copy of Income Tax Return and assessment order passed under section 143(3) for assessment year 2010-11. g. Copy of Letter, dated 14-2-2013 during the assessment proceedings in the case of Sh. Suveer Arora in respect to issue of share capital to assessee. Assessing Officer/Commissioner (Appeals) made addition negating the above facts. On further appeal: Held by the ITAT that no addition could be made in the hands of the company under section 68 as facts have been established of the genuineness of the monies received.

The Tax Publishers

Vam-Hi-Fashion Garments Pvt. Ltd. v. Asstt. CIT [ITA No. 494 (Del) of 2016, dt. 21-3-2016] : 2016 TaxPub(DT) 1579 (Del-Trib)

Addition under section 68 for share capital invested by a non-resident

Facts:

Assessee Pvt. Company in the business of ready-made garments had received share capital investment from one Sh. Suveer Arora amounting to INR 3.1 crores. The said investor had vast experience in ready-made garments business, also a tax assessed non-resident based out of Netherlands. Following documents were produced as proof for the said share capital investment by the assessee.

a. Confirmation from Mr. Suveer Arora

b. Copy of PAN Card of Mr. Suveer Arora

c. Copy of Bank Statement showing the investment made and source thereof.

d. Copy of Form No.2 regarding allotment of shares

e. Copy of Passport of Mr. Suveer Arora

f. Copy of Income Tax Return and assessment order passed under section 143(3) for assessment year 2010-11.

g. Copy of Letter, dated 14-2-2013 during the assessment proceedings in the case of Sh. Suveer Arora in respect to issue of share capital to assessee.

Assessing Officer/Commissioner (Appeals) made addition negating the above facts. On further appeal:

Held by the ITAT that no addition could be made in the hands of the company under section 68 as facts have been established of the genuineness of the monies received.